An Important Qualitative Factor to Consider Regarding a Special Order

question 65

Multiple Choice

An important qualitative factor to consider regarding a special order is the

• A)variable costs associated with the special order.
• B)avoidable fixed costs associated with the special order.
• C)effect the sale of special-order units will have on the sale of regularly priced units.
• D)incremental revenue from the special order.

---

Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing owners' claims on the company.

Financial Institution

An organization that provides financial services, such as banking, insurance, investment management, and loans to individuals, businesses, and governments.

Paid-In Capital

Funds raised by a company through the issuance of shares to shareholders, representing capital contributed to the business above the nominal or par value of the shares.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument.